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Fed Prints Another $205B This Week, M2 Growing at Fastest Pace on Record

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Re: Fed Prints Another $205B This Week, M2 Growing at Fastest Pace on Record

#51

Post by touktouk »

Fjolsvith wrote: post #9
strict9 wrote: post #2

> 30.2% of US GDP How much further can they go? 26 million or so recent unemployment applications and the stock market is not off much from recent all time highs. This is more concerning than the initial falling knife mid-March.

Gotta tell you guys that the Fed is going to get restructured. Basically its going to declare bankruptcy and stiff the central banks to whom it is indebted. Trump is looking to nominate Judy Shelton to the Federal Reserve as she is the one who will do the restructuring. [1] How is he able to do this? “The Fed will finance a special purpose vehicle (SPV) for each acronym to conduct these operations. The Treasury, usin…

Defaulting on the debt means anyone owning treasury bonds lose their money.

Re: Fed Prints Another $205B This Week, M2 Growing at Fastest Pace on Record

#52

Post by umeshunni »

quickthrowman wrote: post #34
mywittyname wrote: post #4

Earlier quoted context omitted.

A stock buyback is theoretically the same as a dividend, in that it should reduce market cap by roughly the amount of the buyback. I do agree with your sentiment though. I feel like the wealthy in this country have developed the perfect scheme for leeching the wealth from this country. We will only know how bad it was after the postmortem, at which point, we will be (figuratively) dead.

Only it isn’t the same. Dividends are taxable, capital gains are only taxable upon closing a position.

Ok, so it's even better than a dividend. That would explain why it's used.

Re: Fed Prints Another $205B This Week, M2 Growing at Fastest Pace on Record

#53

Post by vzidex »

alistairSH wrote: post #23
ackbar03 wrote: post #18

What's the saying these days? Money printer goes brrrrrrr?

https://brrr.money

Is the song that plays on this website commonly known? The only other time I've heard it is in the video that the New Zealand mass shooter recorded, and it makes me uncomfortable that it's the same song if it is indeed not common.

Re: Fed Prints Another $205B This Week, M2 Growing at Fastest Pace on Record

#55

Post by xadhominemx »

logicslave wrote: post #3

One interesting fact I learned the other day: IBM did 140 billion in stock buy backs in the last decade. They have a 100 Billion dollar market cap. I think that is a bit of what we have going on right now. A system propped up by injected cash, which works for now because everyone plays along. Most of this injected money goes into the pockets of the rich, who are the ones holding the assets that the FED is bailing out…

Yes.... they have a small market cap because they are returning cash to shareholders. That is literally the idea of a buyback - to shrink the market cap.

Re: Fed Prints Another $205B This Week, M2 Growing at Fastest Pace on Record

#56

Post by shse »

bawana wrote: post #16

And there will be NO inflation because this money is largely going to corporations who will figure out ways to maximize ROI -> invest it in the financial market. So although there might inflation of equity prices (as seen by the recovery of the S&P and other equities), the world is still out of work and starving and without the dollars to drive demand and price increases of goods and services. We need to separate fin…

Real state prices will explode. That’s what happened after 2009 due to QE.

Re: Fed Prints Another $205B This Week, M2 Growing at Fastest Pace on Record

#57

Post by RobertoG »

yeldarb wrote: post #43
throwanem wrote: post #36

Earlier quoted context omitted.

I was about to make a joke that it looked like they could go about another 69.8%. Now I'm glad I waited. What does that even signify, a federal bank owning >100% of its attached country's GDP? Debt in excess of produced value, i.e., the country being underwater?

GDP is per year. Analogous to a person making $100k/yr with a $110k mortgage. Edit: Although perhaps not that analogous because is this even technically "debt"?

It's not debt, it's only a number that reflect the accumulate of past government deficits.

A government is the issuer of the currency, so, nothing to do with the debt of a household or a business.

Re: Fed Prints Another $205B This Week, M2 Growing at Fastest Pace on Record

#58

Post by magicsmoke »

new_time wrote: post #48
logicslave wrote: post #3

One interesting fact I learned the other day: IBM did 140 billion in stock buy backs in the last decade. They have a 100 Billion dollar market cap. I think that is a bit of what we have going on right now. A system propped up by injected cash, which works for now because everyone plays along. Most of this injected money goes into the pockets of the rich, who are the ones holding the assets that the FED is bailing out…

However this saves us from inflation, since the money circulates among the wealthy and corporations rather than among the common person.

It also puts assets with positive rates of return out of the hands of the common person. Kind of like how an overheated housing market makes it so you'll never own a home and are stuck paying rent forever. If you ever wanted to own a piece of America's economy and get dividends in the future, now it's priced out of reach. This inflation in investment assets further cements the division between those that have to work 9-5 for a living, and those that have enough investments to live off their returns and not worry about becoming destitute. Jumping that gap between renter and owner is harder than ever.

Re: Fed Prints Another $205B This Week, M2 Growing at Fastest Pace on Record

#59

Post by luckylion »

ballenf wrote: post #49
colechristensen wrote: post #31

Earlier quoted context omitted.

Paying dividends is fine if you aren't firing workers or taking bailouts.

Why is firing workers inconsistent with paying dividends? They kind of feel like two sides of the same coin: a company can't find a better return on its capital so it divests itself of the resource (labor or cash).

It's not. It's just that these companies shouldn't get handouts.

Buy back stocks in the good times, issue new stock when the going gets rough.

Right now it's "buy back stocks in the good times, get bailouts then the bad times come".

Re: Fed Prints Another $205B This Week, M2 Growing at Fastest Pace on Record

#60

Post by gbasin »

throw0101a wrote: post #42
logicslave wrote: post #3

One interesting fact I learned the other day: IBM did 140 billion in stock buy backs in the last decade. They have a 100 Billion dollar market cap. I think that is a bit of what we have going on right now. A system propped up by injected cash, which works for now because everyone plays along. Most of this injected money goes into the pockets of the rich, who are the ones holding the assets that the FED is bailing out…

> IBM did 140 billion in stock buy backs in the last decade. And? What is the alternative, and is it any better? > IBM has effectively been dead money for the last decade. They’re up 20%, including dividends, versus 315% for the tech index (XLK). IBM currently has a market cap of ~$100 billion, so when people hear they spent $45 billion on buybacks while their share price went down 38%, people get angry. I get it, it…

Bingo. Would you rather have a poorly managed company hold on to their cash and spend it internally, or return it to shareholders?
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